Look how the stock successfully tested the trend-line/20 SMA before going higher. Text book. Next target 50SMA.
This brings us back to the super-focus theme of trading. We focus on two patterns (bases, and trend-lines) only, no cup and handle, no head and shoulders, nothing else. We only use a few indicators (moving average on daily and intraday, Pivot lines, volume). We only have a few intraday set-ups we use and all our trades can be contained within the strategy of buying breakouts/shorting breakdowns and buying support/shorting resistance. We have followed the same bulk of stocks now for over a decade. We've traded together for over a decade without any additions/subtractions.
Everything we do is contained in a small trading universe. But we know every nuance of our world. We don't spread ourselves thin and we are experts in what we do. You've heard it a thousand times -- find something you're good at and then get better. But nothing could be more true in trading. Biggest mistake of new traders is going into a chat room and following different trades by different traders using different strategies. Find your voice and then learn to sing.
